The right answer is b. The output units sold totaled 8,000. The sales revenue reached $9,600,000. Variable costs stand at $6,000,000, with fixed costs amounting to $2,600,000. The product's price is $1,200. Average variable cost calculates to $750. Profit calculation results in TR - TC, hence Profit = $1,270,000 = $1,200Q - $750Q - $2,600,000. Resulting in $3,870,000 = $450Q, thus Q is 8,600 units.
Response:
Refer to the explanation section
Clarification:
The disparity between the inventory count recorded and the actual count suggests that the goods in stock have either been sold or lost. For the sake of ongoing operations, it is presumed they have been sold. Accordingly, the journal entry to document the sale is -
December - 31 Cost of goods sold Debit 45,000
($415,000 - $370,000)
Merchandise Inventory Credit 45,000
(To record the sale of merchandise: adjusted)
Answer:
The elasticity of supply for hot cocoa calculated at 1.43.
(D) The coffee market's supply is less elastic compared to that of hot cocoa.
Explanation:
Applying the midpoint formula,
The elasticity of supply for hot cocoa is (change in quantity supplied/average quantity supplied) ÷ (change in price/average price).
The change in quantity supplied amounts to 101 - 31 = 70.
The average quantity supplied equals (101 + 31)/2 = 66.
70/66 yields 1.06.
The price change is 9.75 - 4.5 = 5.25.
The average price is (9.75 + 4.5)/2 = 7.125.
5.25 divided by 7.125 results in 0.74.
Thus, hot cocoa's elasticity of supply is 1.06 ÷ 0.74 = 1.43. The supply for hot cocoa is elastic since this value exceeds 1.
For coffee, the elasticity of supply computes to (73 - 31)/(73 + 31)/2 ÷ 0.74, which simplifies to 42/52 ÷ 0.74 = 0.81 ÷ 0.74 = 1.09. Coffee supply is regarded as elastic as well because its elasticity is above 1.
However, the supply of coffee is less elastic than that of hot cocoa since its elasticity value is lower than that for hot cocoa.
Response:
The correct choice is option "D": It is likely that the fees imposed by a bank will exceed the interest offered on a teenager’s savings account during their initial saving period.
Clarification:
Financial institutions often impose elevated fees on savings accounts for teenagers since they lack a credit history. This can make them appear to be riskier financially, particularly concerning overdrafts. Consequently, banks generally offer lower interest rates on these accounts along with certain limitations that one should consider before selecting a bank for account opening.
Doc's ribhouse commenced with $52,000 in equity, generated $35,000 in net income, and distributed $12,000 in dividends. To find the ending equity, use the formula: Beginning Equity + Net Income - Dividends = Ending Equity. Plugging in the values gives us: $52,000 + $35,000 - $12,000 = Ending equity. This results in $52,000 + $23,000 = $75,000, confirming the ending equity is $75,000.
